As we announced in May, Mackenzie will be winding up Mackenzie Financial Capital Corporation.
On or around July 30, 2021, we will merge 34 Corporate Class funds into their trust fund equivalent or “twin trust” where required. If no corresponding trust fund currently exists, a continuing fund will be launched to facilitate the merger.
A full list of the terminating funds can be found here.
Fund merger details
Below are important details and dates to help you prepare for the fund mergers.
Last day for ALL direct trades and wire orders
Friday, July 30, 4:00 PM (EST)
Friday, July 30
The following companies are impacted: Management company codes: MFC, MRD
Merger details will be communicated through the Transaction Reconciliation File (TS):
Fund Merger Switch-out
“M” – merger
Fund Merger Switch-in
“M” – merger
Some terminating corporate class funds may pay merger-related distributions on July 28. Pre-merger distributions may also be paid on some continuing funds on July 23, as the existing trust funds are deemed to have a taxation year-end on the merger date.
Please note that for the month of July, our regular distributions for fixed rate distribution series will be paid on Friday July 16, a week earlier than originally scheduled.
To protect the interests of investors who hold the continuing trust funds in non-registered accounts, Mackenzie may need to launch additional trust funds ("twin trusts") that will be used instead of the existing continuing funds. Any twin trusts will be hard-capped immediately following the merger.
This means that PACs and purchases (including dealer-administered systematic plans) would be directed to the existing trust, while redemptions and SWPs would come from the twin trust. For example, here’s what would happen for an investor in the Mackenzie Global Resource Class if a twin trust is required.
Mackenzie Global Resource Class
Mackenzie Global Resource Fund
Mackenzie Global Resource Fund II
Please use these guidelines when setting up dealer-administered systematic plans on any twin trust funds.
Currently we anticipate that twin trusts will be used instead of the following existing trust funds:
Mackenzie Cundill Value Fund
Mackenzie Global Resource Fund
Mackenzie Ivy International Fund
If additional twin trusts are needed, we’ll provide you with an updated list in the week before the mergers.
Other important merger information
The mergers will be executed on a tax-deferred basis, which means that investors holding a terminating fund in a non-registered account will not realize any capital gains or losses as a result of the mergers.
Dealer and advisor reports of the accounts affected by the mergers are available upon request.
The mergers will be processed as exchange transactions from the terminating series to the continuing series.
All systematic transactions (such as SWP, RIF/LIF/LRIF payments and PACs) on client held accounts will be rolled over to the continuing fund at the end of business on July 30 as part of the merger process.
Any bank assignments will be replaced on the continuing funds and sent to their respective bank.
Outstanding certificates for the terminating funds will be cancelled and held as non-certificated units. Letters will be sent to affected investors and advisors.
Investors in client held accounts will receive a confirmation of these transactions following the mergers.
The documents below provide fund-related details for the mergers, as well as the new trust funds that will be launched to facilitate the mergers:
Additional details can be obtained from the FD file, available through Fundserv on July 23 with an effective date of July 30 for the merging funds, and an effective date of August 3 for the new trust funds.
For further information please contact your Dealer Relations Account Manager directly. You can also call us at 1-800-268-7119 or send an email to firstname.lastname@example.org.
Thank you for your continued support of Mackenzie Investments.
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Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.